The strength of the much-anticipated spring auction season will be revealed in the three weeks prior to the AFL Grand Final. As in previous years, the early spring activity will set the scene for the remainder of the year.
The comparable period in the past three years presented very different outcomes, 2007, was a very strong year with strong price growth, 2008 was slow due to the global financial crisis and 2009 was a year of recovery.
In terms of stock levels, this year the REIV expects just over 2000 auctions to be held in the three weeks prior to the AFL Grand Final, compared to 2422 in 2007, 1734 in 2008 and 2096 last year.
In 2007 and 2009 the clearance rate was 82 and 83.5 per cent respectively, both very strong years and very different to 2008 when it was 66 per cent with prices stalling particularly at the top end of the market.
Another consideration which may have some impact on activity in the early spring market is the election, although it is difficult to say whether the results when known will have any material effect on the number of listings later in the year.
If demand remains comparable with this winter’s market activity, there may well be an increase in the number of bidders and whilst most vendors who decide to sell this spring will achieve their aim of selling their home, the number of bidders will determine the difference between a good result or an exceptional one.
As the clearance rates have been gradually increasing in the last few weeks we may be in for another solid season.
To follow the market as spring unfolds, make sure you visit www.reiv.com.au, where you will find the auction results posted every Saturday night.